A Blockchain ETF Is Launching on the London Stock Exchange Today

Last updated Mar 12, 2019

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Investment management company Invesco is launching a blockchain exchange-traded fund (ETF) on the London Stock Exchange today.

For the effort, Invesco has partnered with London-based Elwood Asset Management, an investment firm specializing in digital assets, to launch the product called the “Invesco Elwood Global Blockchain UCITS ETF.”

Elwood announced the news Monday, saying the ETF is designed to target companies with the potential to generate “real earnings” from blockchain technology.

Chris Mellor, head of EMEA (Europe, the Middle East and Africa) ETF equity product management at Invesco, said:

“The potential for blockchain to drive real earnings is huge, but it is often hidden within companies involved in other areas. This ETF offers investors access to companies with real earnings now, but with the added potential of blockchain-related earnings not reflected in their share prices.”

This is yet another of many signals that the crypto markets are maturing and being recognized by traditional investors for the potential value that they bring not only to the business community at large but for the investment world as well. With this, at least in this corner of the world, crypto is seen as a legitimate investment vehicle and bear market not withstanding, sees the potential for a lot of future success and value.

With this investment and show of confidence as well, the crypto markets can use that investment to continue to build up the infrastructure and build more relationships with the traditional business community such that will allow for even more growth. With the influx of resources to these projects, investors will see a solid return on their investment and this in turn will feed even more growth in the crypto space.

The ETF carries an annual management fee of 0.65 percent and aims to deliver the performance of the Elwood Blockchain Global Equity Index by “physically investing in the index constituents,” Elwood said in its statement.

The index, calculated for Elwood by German provider of financial indices Solactive AG, currently has a portfolio of 48 companies.